Dear Friends,
Kindly guide me on the following case:
Customer A (Company)
Vendor B (Individual)
Vendor C (Company)
As per the agreement, Customer A avails services from Vendor C. Since Vendor C does not have the expertise to provide such services it subcontracts the work to provide such services to Vendor B. On completion of service, Customer A, makes payment by deducting TDS, in the name of Vendor C. Vendor C on its part, issues a fresh cheque in the name of Vendor B for the same amount received from Customer A.
In the given scenario, I would like to know, how will Vendor B, account for such income (Computation of Income), when the TDS certificate has been issued in the name of Vendor C, and further TDS compliances (if any) required.
Regards
CAclubindia
